Story image

JB Hi-Fi NZ profit slumps despite revenue growth

23 Jan 17

JB Hi-Fi NZ has seen its final profit for last financial year almost halved, despite an 11% rise in revenue and a jump of nearly 13% in gross profit.

The retailer’s newly released financial records for the financial year ending 30 June 2016 show revenue up from $211.1 million to $234.6 million, with gross profit climbing from $38.3 million to $43.2 million.

Income tax expense was slashed from $462,000 to $299,000.

However the profit for the year slumped 39%, from $1.2 million to just $756,000 on the back of increased expenses across most areas of the business.

The departure of Dick Smith from the market in early 2016 has bolstered JB Hi-Fi sales across Australia and New Zealand according to Richard Murray, JB Hi-Fi chief executive, who says the closure ‘contributed to an increase in our sales of computers, visual, audio and accessories’.

That positive effect was expected to continue throughout the first half of FY17, moderating as time passed.

The New Zealand sales were also driven by the opening of a new Queensgate store and increased demand for third party prepaid content cards in the first half of the financial year.

JB Hi-Fi NZ ended the financial year with assets to the tune of $78.8 million, including $41.6 million in inventories, a $1 million decline from the 2015 figure of $79.8 million.

Liabilities were slightly reduced at $20.0 million versus $21.7 million a year ago with the company holding total equity of $58.0 million.

Across ANZ, JB Hi-Fi clocked up record sales of AU$3.95 million for the 2016 financial year, with profits up 11.5% to AU$152.2 million.

The Australian parent company reported robust sales in the lead up to Christmas, with sales up 12.4% in the first quarter of FY17.

The company acquired The Good Guys in a $870 million deal late last year.

Company-X celebrates ranking on Deloitte's Fast 500 Asia Pacific
Hamilton-based software firm Company-X has landed a spot on Deloitte Technology’s Fast 500 Asia Pacific 2018 ranking - for the second year in a row.
Gartner names Proofpoint Leader in enterprise information archiving
The report provides a detailed overview of the enterprise information archiving market and evaluates vendors based on completeness of vision and ability to execute.
WatchGuard appoints new channel distributors in A/NZ
The appointments will enable WatchGuard to expand its regional channel reseller footprint.
Tensions on the rise after Huawei CFO arrest
“Recently our corporate CFO, Meng Wanzhou, was provisionally detained by the Canadian authorities on behalf of the United States of America."
Why the future of IT infrastructure is always on and always available
As more organisations embrace digital business, infrastructure and operations leaders will need to evolve their strategies and skills to keep up.
Juniper simplifies data integration to improve threat detection
Updates to the Juniper Advanced Threat Prevention Appliances leverage third-party firewalls and security data sources.
IDC: Tablets stay dead, notebooks keep head above water
An IDC report predicts a soft personal PC market, slipping into further decline with the exception of notebooks, gaming PCs, and business PC upgrades.
The 2018 Canalys APAC Channels Forum keynote
There was a lot to unpack at the Canalys APAC Channels Forum keynote. This long-form piece tries to cover all the most relevant points for A/NZ.